 "Luxury segment housing sales up by 151%, Delhi-NCR leads with 216% growth")
The luxury residential segment has witnessed continued momentum in sales and launch activity for the second consecutive year in 2023, CBRE’s ‘India Market Monitor Q1 2023’ report stated. An increase of approximately 151 per cent year-on-year (YoY) in January and March 2023 was reported.
According to the report, Delhi-NCR leads in luxury segment housing sales with 216 per cent growth in Q1CY23 vis-à-vis Q1CY22. Other cities including Mumbai, Hyderabad, Pune and Kolkata are among the leading cities with maximum traction for high-end real estate units.
“Sales in Delhi-NCR surged by over 216 per cent, Mumbai by 44 per cent, Hyderabad by approximately 800 per cent, Kolkata by 100 per cent and Pune by nearly 13 times on a YoY basis for quarter ending Jan-Mar’ 23,” the report stated.
The post-pandemic rise in ownership of luxury housing is believed to be a result of a changed mindset of homebuyers, as they now look for larger spaces and have a higher preference for home ownership with better amenities.
A housing unit with cost of Rs 4 crores or more falls in the luxury housing segment, while those in the Rs 1-1.5 crore price bracket are in the premium or high-end segment.
The overall sales of residential units across all segments have also reported a 12 per cent increase quarter-on-quarter (QoQ) as well as YoY during the period of January-March 2023.
A total of over 78,000 housing units were sold during the period from January-March 2023, while about over 81,000 units were launched during this period.
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The report found that out of this the housing units sold, 49 per cent was recorded in the mid-end category, followed by affordable and budget projects.
In CBRE’s older survey, it was noted that more than half of Gen-Z respondents planned to move to a new home in the next two years, compared to only 29 per cent of baby boomers.
CBRE’s Chairman & CEO - India, South-East Asia, Middle East & Africa, Anshuman Magazine said that the demand for luxury housing this year will primarily be driven by the aspiration of continued home ownership.
“The momentum is expected to continue in the coming quarters as well. Projects with better amenities, focus on health and safety and clean surroundings to further gain an edge amidst evolving consumer preferences,” he added.
Anuj Puri, Chairman - ANAROCK Group, in a separate report said that from the last financial year, the number of land deals has risen significantly – from 44 in FY22 to 87 in FY23. However, in terms of area, the increase was just 13 per cent - implying that several smaller plots were closed in FY23.”
“With residential sales in the top 7 cities scaling an all-time high in the last financial year (approx. 3.8 lakh units), large and listed developers have been cashing in on the unrelenting housing boom. With land being the key input commodity for real estate development, these players have been making strategic land investments across prominent micro-markets and quite a few smaller deals took place in the last financial year.”